Modular Automation International to Offer Leasing of Bespoke Assembly Equipment
Modular Automation International is to offer customers the option of leasing bespoke assembly equipment as an alternative to outright purchase.
The move means that Modular’s customers will no longer necessarily have to commit to a hefty capital outlay and make staged payments during the development, build and commissioning of new equipment.
The new leasing contract allows customers to spread the cost of the installation over a period of up to 5 years with no up-front payments and considerable tax advantages. Maintenance can also be included in the leasing contract. After the initial rental period there are several options including the right to buy the equipment for the equivalent of one month’s rental.
As an example, a piece of equipment with a capital value of £250,000 would cost around £1270 per week to lease. Working a two shift system of 80 hours a week, that’s just £15.88 per hour.
Another advantage of leasing is that lease payments are regarded by HM Revenue & Customs as a business expense and are fully allowable against corporation tax liability. Whereas with outright purchase the annual tax allowance is only 25% on a figure which diminishes each year.
Modular’s sales manager Mark Hendry explained why leasing has not been available to customers in the past. “Most assembly equipment is custom built to do a specific job and can’t be used for any other purpose unlike, for example a car or a piece of office equipment. That means that if a customer were to default the leasing company could be left with a machine on its books that cost several hundred thousand pounds, but would be impossible to sell on. So it’s not surprising that finance companies are worried about getting their fingers burnt.
We’ve been looking for a leasing partner for about five years and we’ve finally struck a deal with one of the country’s top finance houses that both parties are comfortable with. It’s a major step forward for Modular and, I think, for British manufacturing.”
With overheads constantly rising and fierce competition from the Far East and
All business enquiries to:
Mark Hendry
Modular Automation International Ltd.
Talbot Way
Small heath Business Park
Birmingham B10 0HJ
Tel: 0121 766 7979 Fax: 0121 766 6385
Email: Hendry@modular.co.uk
Web: www.modular.co.uk
Photo caption: Assembly equipment
High resolution images are available from enquiries@thewordsworkshop.co.uk
